A Budgeting Educational Example
 
The student has two sources of countable unearned educational income. A $2400 deferred private loan intended to cover six periods (months) and $600 scholarship from his employer intended to cover three periods (months). The student has allowable educational expenses (some used for four periods and another for six). The following calculation must be completed:
 
Income
$2400
COUNTABLE loan amount
 
/ 6
divided by six periods
 
$400
equals converted amount
 
 
 
 
$600
COUNTABLE scholarship amount
 
/ 3
divided by three periods
 
$200
equals converted amount
 
 
 
 
$400
 
 
+ $200
 
 
$600
The results of the two added together equals the total income amount
 
 
 
Expenses
$1200
DEDUCTIBLE mandatory fees
 
/ 6
divided by six periods
 
$200
equals converted amount
 
 
 
 
$800
DEDUCTIBLE books and supplies
 
/ 4
divided by four periods
 
$200
equals the converted amount
 
 
 
 
$200
 
 
+ $200
 
 
$400
The results of the two added together equals the total expense amount
 
 
 
 
$600
 
 
- $400
 
 
$200
The results of the income amount with the expense amount subtracted is the total adjusted income amount
 
The $200 total is used as a monthly amount over the period of time that is the longest; in this example, it is six periods.